Excel Files For Case 12 Value Publishing
Excel Files For Case 12 Value Publishing
Excel Files For Case 12 Value Publishing
Lowe's
Number of stores 477 520 576 650 744
Sq. footage (M) 39.9 47.8 57.0 67.8 80.7
Number of transactions (M) 231 268.232 299.225 342.173 395.141
Number of employees 64070 72715 86160 94601 108317
Shares outstanding (M) 701.26 705.29 764.72 766.48 775.71
Earnings per share 0.51 0.68 0.9 1.06 1.3
Avg annual PE 19.5 28.2 30.1 22 27.5
(1) Excludes Apex Supply Company, Georgia Lighting, Maintenance Warehouse, Your "other" Warehouse, and National Blinds and Wallp
and National Blinds and Wallpaper.
Exhibit 3
Lowe's
Fiscal year
1997 1998 1999 2000 2001
INCOME STATEMENT
Sales 24,156 30,219 38,434 45,738 53,553
Cost of sales 17,092 21,241 26,560 31,456 36,642
Gross profit 7,064 8,978 11,874 14,282 16,911
Cash operating expenses (1) 4,885 5,935 7,603 9,490 11,215
Depreciation & amortization 283 373 463 601 764
EBIT 1,896 2,670 3,808 4,191 4,932
Non-recurring expenses 0 0 0 0 0
Net interest expense -2 16 4 -26 -25
EBT 1,898 2,654 3,804 4,217 4,957
Income taxes 738 1,040 1,484 1,636 1,913
Net earnings 1,160 1,614 2,320 2,581 3,044
BALANCE SHEET
Cash and ST investments 174 62 170 177 2,546
Accounts receivable 556 469 587 835 920
Merchandise inventory 3,602 4,293 5,489 6,556 6,725
Other current assets 128 109 144 209 170
Total current assets 4,460 4,933 6,390 7,777 10,361
Net property and equipment 6,509 8,160 10,227 13,068 15,375
Other assets 260 372 464 540 658
Total assets 11,229 13,465 17,081 21,385 26,394
(1) Includes operating lease payments of $262 million in 1997, $321 million in 1998, $389 million in 1999, $479 million in 2000, and $522
1999, $479 million in 2000, and $522 in 2001.
Exhibit 5
BALANCE SHEET
Cash and ST investments 211 243 569 469 853
Accounts receivable 118 144 148 161 166
Merchandise inventory 1,715 2,105 2,812 3,285 3,611
Other current assets 65 94 164 243 291
Total current assets 2,110 2,586 3,693 4,157 4,920
Net property and equipment 3,005 3,637 5,177 7,035 8,653
Other assets 104 122 142 166 162
Total assets 5,219 6,345 9,012 11,358 13,736
(1) Includes operating lease payments of $59 million in 1997, $89 million in 1998, $144 million in 1999, $162 million in 2000, and $188 in
99, $162 million in 2000, and $188 in 2001.
Exhibit 6
Industrial Prod. (% Change, Annualized) 6.9 5.1 3.7 4.5 -3.7 3.8
Housing Starts (Mill. Units) 1.47 1.62 1.65 1.57 1.6 1.66
Unit Car Sales (Mill. Units) 8.3 8.1 8.7 8.9 8.4 8.2
Personal Savings Rate (%) 4.2 4.7 2.7 2.8 2.3 3.5
National Unemployment Rate (%) 4.9 4.5 4.2 4 4.8 5.9
AAA Corp Bond Rate (%) 7.3 6.5 7 7.6 7.1 6.4
10-Year Treasury Note Rate (%) 6.4 5.3 5.6 6.0 5.0 4.8
3-Month Treasury Bill Rate (%) 5.1 4.8 4.6 5.8 3.4 1.7
*Estimated
5.3 4
1.59 1.63
8.3 8
3.4 1.5
5.9 5
6.4 7.3
5.1 6.2
2.4 4.5
3.2 3.8
2.5 2.6
2.5 2.8
2003
2nd* 3rd* 4th*
10901 11060 11270
9681 9770 9861
6748 6798 6849
1249 1279 1315
5.5 5 5
1.58 1.6 1.6
8.2 8.3 8.4
Exhibit 7
Fiscal year
1997 1998 1999 2000 2001
PROFITABILITY
Return on capital (NOPAT/Total capital) 13.2% 15.3% 17.3% 15.1% 15.2%
Return on equity (Net earnings/S. Equity) 16.3% 18.5% 18.8% 17.2% 16.8%
MARGINS
Gross margin (Gross profit/Sales) 29.2% 29.7% 30.9% 31.2% 31.6%
Cash operating expenses/Sales 20.2% 19.6% 19.8% 20.7% 20.9%
Depreciation/Sales 1.2% 1.2% 1.2% 1.3% 1.4%
Depreciation/P&E 4.3% 4.6% 4.5% 4.6% 5.0%
Operating margin (EBIT/Sales) 7.8% 8.8% 9.9% 9.2% 9.2%
NOPAT margin (NOPAT/Sales) 4.8% 5.4% 6.0% 5.6% 5.7%
TURNOVER
Total capital turnover (Sales/Total capital) 2.8 2.8 2.9 2.7 2.7
P&E turnover (Sales/P&E) 3.7 3.7 3.8 3.5 3.5
Working capital turnover (Sales/WC) 12.0 14.5 13.9 13.5 13.9
Receivable turnover (Sales/AR) 43.4 64.4 65.5 54.8 58.2
Inventory turnover (COGS/M. inventory) 4.7 4.9 4.8 4.8 5.4
Sales per store ($ millions) 38.7 39.7 41.3 40.3 40.2
Sales per sq foot ($) 366.0 373.1 384.3 371.9 366.8
Sales per transaction ($) 43.9 45.4 48.2 48.8 49.1
GROWTH
Total sales growth 25.1% 27.2% 19.0% 17.1%
Sales growth for existing stores 2.6% 4.1% -2.4% -0.4%
Growth in new stores 22.0% 22.2% 21.9% 17.5%
Growth in sq footage per store 0.6% 1.0% 0.9% 1.0%
LEVERAGE
Total Capital/Equity 1.24 1.22 1.09 1.13 1.10
Fiscal year
ASSUMPTIONS 2001 2002E 2003E 2004E 2005E 2006E
Growth in new stores 17.5% 15.0% 13.2% 9.0% 7.0% 5.5%
Sales growth for existing stores -0.4% 3.0% 4.0% 8.3% 8.3% 8.3%
Total sales growth 17.1% 18.0% 17.2% 17.3% 15.3% 13.8%
Gross margin 31.6% 32.0% 32.3% 32.4% 32.5% 32.5%
Cash operating expenses/Sales 20.9% 21.0% 20.7% 20.8% 20.5% 20.5%
Depreciation/Sales 1.4% 1.4% 1.4% 1.4% 1.4% 1.4%
Income tax rate 38.6% 37.6% 37.5% 37.5% 37.5% 37.5%
Cash & ST Inv/Sales 4.8% 5.0% 5.0% 5.1% 5.3% 5.3%
Receivable turnover 58.2 55.0 53.0 52.0 50.0 50.0
Inventory turnover 5.4 5.3 5.1 5.0 4.7 4.7
P&E Turnover 3.5 3.3 3.3 3.3 3.3 3.3
Payables/COGS 9.4% 9.4% 9.4% 9.4% 9.4% 9.4%
Other curr liab/Sales 4.4% 4.4% 4.4% 4.4% 4.4% 4.4%
FORECAST
Number of stores 1,333 1,533 1,735 1,891 2,024 2,135
Net sales 53,553 63,195 74,049 86,860 100,149 114,000
Cost of sales 36,642 42,972 50,131 58,717 67,601 76,950
Gross profit 16,911 20,222 23,918 28,143 32,549 37,050
Cash operating expenses 11,215 13,271 15,328 18,067 20,531 23,370
Depreciation & amortization 764 902 1,056 1,239 1,429 1,626
EBIT 4,932 6,050 7,533 8,837 10,589 12,054
NOPAT 3,028 3,775 4,708 5,523 6,618 7,534